Thiruvanathapuram: The KSEB crisis aggravated further after contract companies cut their ties with the board. It should be noted that the regulatory commission had earlier declared the present contracts as invalid.  As a result, the debt-ridden board is now bearing additional expenses amounting to Rs 2.5 crores, every single day. The public in the state will have to bear the brunt of the crisis, as the additional cost in purchasing electricity from the power exchange will be recovered from them in the form of surcharges.

The private companies bound by contract were paid a maximum of Rs 4.39, for every single unit, by the KSEB. However, the present market rates of electricity is way higher than this, costing around Rs 6.50 per unit. The difference in prices would have also forced the companies to temporarily cut their ties with the board. 

It is said that KSEB, at present, is purchasing close to 1 crore units of electricity everyday from the power exchange, bearing an additional charge of Rs 2.50, for every single unit. This is the only way to avoid load shedding in the state. To make things worse, the overdependence on water in Idukki reservoir for production purposes, will cause problems during summer.   

The regulatory commission had earlier scrapped 25-year-long contracts with four private companies, serving a major blow to KSEB. Later on, the commission granted the board a relaxation period of 75 days for deciding future course of action. However, the response from the contract companies has now pushed the electricity board into further crisis.